Blackstone Reportedly In Talks For Stake In Jet Airways Loyalty Arm

(RTTNews) - Blackstone Group LP (BX) is in talks to buy a stake in the loyalty program of Jet Airways India Ltd., the troubled Indian carrier that's exploring options to raise cash, Bloomberg reported citing people familiar with the matter.

The private equity firm has expressed interest in a deal that could value Jet Privilege Pvt at about 30 billion rupees ($429 million) to 40 billion rupees, the report said. Jet Airways has been seeking a higher valuation for the business, which is part owned by the Indian airline's partner Etihad Airways PJSC.

Etihad owns 50.1 percent of the loyalty program, while Jet Airways owns the rest. The transaction being contemplated by Blackstone would see both Jet Airways and Etihad remain investors in Jet Privilege, another person said.

Any deal would be dependent on Jet Airways also securing adequate funding for its airline operations, according to the person. There's no certainty the deliberations will lead to an agreement, and other suitors could emerge for a stake in Jet Privilege, the report said.